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Friday, October 5, 2012

News Recap: Lucas Energy (LEI) & Constellation Brands (NYSE:STZ)

Ryan Morris and Josh Young were unanimously elected to
serve on the board of directors of the company, by the board of directors for Lucas
Energy, Inc.(NYSEAMEX:LEI), independent oil and Gas Company.

Ryan J. Morris is the Managing Member of Meson
Capital Partners LLC, and Joshua D. Young is the founder and portfolio manager
of Young Capital Management.

The largest shareholders of Lucas with a combined
stake of over 4 million shares, including 337,500 shares underlying warrants
are Mr. Morris and Mr. Young. This represents more than 16% of the total
outstanding shares.

For the recent 800,000 share private placement of
Lucas common stock, these affiliates participated in full.

Lucas Energy, Inc., a Nevada corporation, is independent
oil and Gas Company based in Houston, Texas, which acquires underdeveloped oil
and gas properties, restores production to the properties, and looks for
underlying value.

Shares of LEI fell 7.60% to $2.07.

Constellation Brands, Inc.(NYSE:STZ), the wine and
spirits maker revealed a 23 percent fall in second quarter earnings on Friday,
but surpassed the Wall Street expectations for adjusted profits and full year
guidance.

Though there was a rise by 3 percent initially, the
stock lost its momentum.

Compared with a profit of $162.7 million, or 76
cents a share, a year earlier, Constellation earned $124.6 million, or 67 cents
a share, for the last quarter.

The
expectation of Wall Street of 54 cent was easily surpassed by Constellation as
it earned 71 cents a share excluding one- time items.

The analyst consensus call for sales was $710
million compared to which the sale was of $698.5 million, a rise of 1.2
percent. Gross margins slipped to 40.8% from 41%.

Forecasts for fiscal 2013 by Constellation are, for
EPS of $1.98, Non-GAAP EPS of $2.00 to $2.10, GAAP EPS of $1.87 to $1.97.

Constellation struck a deal with Grupo Modelo SAB de
CV’s stake in Crown Imports for $1.85 billion for acquisition of the latter in
summer.

A surge of nearby 70 percent in Company’s share was
seen so far this year.